Crude Oil Is Steady Near a
Six-Month High Amid Iran Tensions
By Mark Shenk
March 30 (Bloomberg) -- Crude
oil was little changed, near a six-month high, as 15 British naval personnel
seized in the Persian Gulf remained in Iranian custody for an eighth day,
heightening concern the standoff will threaten oil shipments.
U.K Prime Minister Tony Blair said today Iran would face ``continuing
isolation'' until the servicemen are freed. The March 23 seizure of the crew in
a waterway separating Iran and Iraq has heightened tensions, which were already
elevated because of United Nations sanctions that were imposed on Iran in an
effort to end the country's nuclear program.
``We're seeing the risk premium coming back,'' said Christopher
Edmonds, managing principal at Energy Research & Capital Partners in Atlanta.
``In October Iran and Iraq had settled down and you saw prices decline. The
seizure of the British sailors and the new sanctions has reminded traders of
potential risks to the flow of oil.''
Crude oil for May delivery fell 3 cents to $66 a barrel at 10:45 a.m.
on the New York Mercantile Exchange. Futures ended yesterday's session at
$66.03 a barrel, the highest close since Sept. 8. Prices are up 6 percent this
week and down 1.7 percent from a year ago.
Brent crude oil for May settlement rose 47 cents, or 0.7 percent, to
$68.35 a barrel on the London-based ICE Futures exchange. Futures touched
$69.14 a barrel, the highest price since Sept. 4.
Iranian and U.K. officials have held talks aimed at ending the crisis,
Iran's embassy in London said today in an e-mailed statement that included
criticism of the UN Security Council's role in trying to resolve the dispute.
Yesterday, the council said Iran should release the U.K. service personnel and
called for an ``early resolution to this problem.''
``It's in everyone's interest to find a solution to this,'' said Rick
Mueller, an analyst with Energy Security Analysis Inc. in Tilburg, the
Netherlands. ``There will be a search for a mutually honorable way to get the
sailors back. If and when the sailors are returned prices should fall into the
mid $50s.''
To contact the reporter on this story: Mark Shenk in New York at
[EMAIL PROTECTED] .
Last Updated: March 30, 2007 10:53 EDT
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